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Selling creative work in a price-driven market

When buyers compare proposals on price alone, the answer is not to argue about value. It is to change what is being compared: qualify earlier, write scope that is not interchangeable, and decline the rest.

By David Bustillo — CEO at Onetouch 5 min read
A calculator and a ballpoint pen resting on a printed bar chart, the tools a buyer uses to compare two quotes.
When two documents list the same items, the calculator decides. Photo: Pixabay / Pexels.
Contents

Updated 10 May 2022 — added 2021 ECLAC figures on the digital adoption gap between large firms and smaller ones, and reworked the qualification section.

When most buyers compare quotes on price alone, the answer isn't to argue about value. It's to change what's being compared. Qualify before quoting, write a scope that isn't interchangeable with the next proposal, and decline the work that can only be won by being the cheapest.

Key takeaways

  • Price decides when two proposals describe the same deliverable. Changing the description is what changes the comparison.
  • Technology spending doesn't pay for itself. The World Bank's World Development Report 2016 found digital dividends lag where skills, process and regulation don't change alongside.
  • Demand isn't the constraint. The ITU reported 3.9 billion people still offline in 2016, with internet penetration at 40% in developing countries against 81% in developed ones.
  • A discounted project consumes the same senior attention as a full-price one. The cost is the work it displaces, not the margin on the invoice.
  • Written scope with exclusions, review rounds and acceptance criteria stops two quotes being interchangeable, and stops a project drifting after signature.

Why price is the only thing an untrained buyer can compare

Two proposals arrive. Both say five pages, a logo, social media templates. Nothing distinguishes them except the number at the bottom, so the buyer picks the smaller number. That is a rational decision made with the information available.

The failure happened earlier, in the writing. A list of deliverables is not a product; it's an inventory. Two inventories with the same line items are, for purchasing purposes, the same thing.

The World Bank's World Development Report 2016, published on 13 January 2016, concluded that the development returns from digital technology have fallen short because "analog complements" — regulation, skills and accountable institutions — did not change alongside the technology (World Bank Group).

The same logic operates at company scale. A business that buys a website as a commodity gets commodity results, because nothing in its process changed to use the thing it bought.

Qualify before you quote

Ask three questions before producing a number. Who signs, and what does it cost them if nothing changes this year? What does the business need this work to produce in twelve months? Who inside the company will run it after handover, and with what budget?

Three-stage diagram of the qualification sequence: who signs, what the work must produce in twelve months, and who runs it after handover.
The third question ends most conversations, which is what makes it worth asking early.

The third question is where most conversations end, because it exposes the annual running cost of a website that nobody had planned for. A buyer who can't answer the second question isn't ready to buy. Quote anyway and you train them to shop on price, the only variable they can evaluate.

The ITU reported on 22 July 2016 that 3.9 billion people remained offline, with internet penetration at 40% in developing countries and 81% in developed ones, and mobile-broadband subscriptions expected to reach 3.6 billion by the end of 2016 (International Telecommunication Union).

In a market that's still connecting, the shortage isn't buyers. It's buyers who know what they want the work to do.

What low-price work actually costs the seller

It doesn't cost margin. It costs capacity. The discounted project needs the same discovery call, the same review rounds, the same launch checklist and the same person answering the phone in month four.

Worse, the projects won on price are usually the ones with the least internal capacity to decide. They take longer, not less time. Teams that skip qualification usually rediscover this at handover, when there's nobody to hand over to.

Declining work is a commercial instrument, not a failure of sales. A studio that never says no has no scope discipline, and a studio without scope discipline prices badly for everyone.

Make the scope the product

A scope that changes the comparison contains six things: named deliverables, explicit exclusions, the number of review rounds, acceptance criteria, dependencies with dates and owners, and what happens after launch. Write the exclusions first; they're the part buyers actually read.

Requirements belong in that document, including the ones a buyer wouldn't think to ask for.

Google announced in February 2015 that mobile-friendliness would become a ranking signal in mobile search, and applied the change on 21 April 2015, making small-screen behavior a search requirement rather than a preference (Google Webmaster Central Blog).

Once the document names what the work must achieve, the two proposals stop being interchangeable, and the conversation moves from price to fit.

What changed in this update

The gap this article described is now measured. ECLAC's 2021 study of digital transformation in micro, small and medium enterprises reports fixed broadband access above 90% of firms in most Latin American countries. Web presence still splits sharply by size: in Chile, 65% of large firms have a website against 34% of smaller ones (ECLAC, 25 August 2021). Connectivity stopped being the differentiator; what a company does with it did not. That strengthens the original position, and it is why we now quote scope rather than hours and treat transformation as an operations problem.

Figure showing 34% of smaller firms in Chile with a website against 65% of large firms, while over 90% of firms have fixed broadband.
Access is no longer what separates the two groups; what each one does with it still is.

FAQ

How do you answer a buyer who says another supplier is half the price?

Don't compare prices; compare documents. Ask what the other proposal excludes, how many review rounds it includes and who maintains the work after launch. If those answers are missing, the two numbers price different things and the buyer now knows it.

Should you ever match a lower price?

Only by removing something. A price cut without a scope cut teaches the client that the first number was invented. Reduce the deliverables, extend the timeline, or move a phase to a later quarter, and put the change in writing.

What if a client refuses to answer qualification questions?

Treat the refusal as the answer. A buyer who won't say what the work has to produce has no way to judge whether it worked, which means the project will be judged on taste and settled on price. Send a short scoping proposal instead of a full quote.

What to do first

Fix the order: qualify, then write scope, then price. Reversing it produces quotes that compete on the only field the buyer can read. Write the exclusions before the deliverables, and decline the projects where nobody inside the company owns the outcome. Six months of doing this will tell you something a pricing model can't: which kinds of buyer come back, and which ones only ever bought a number.

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